Martinsburg independent. [volume] (Martinsburg, W. Va.) 1875-1900, 1887-09-10

STOCK pool organized 10 make money
by buying stocks, voting and hold
ing them. But instead of making a
profit by its holdings OF Oregon
Navigation and Northern Pacific,
Oregon Transcontinental made loss
which a report last January showed
stood at 81, l23, 900. In December,
1885, three-year loan was arranged
for 81 $50 900; but the rest has been
hanging on under various temporary
arrangements, and these loans by
falling due would, it was anticipated,
force heavy sales of Northern Pacif-
ic and Oregon Navigation stock, with
serious results. This is prevented
through the advance of $4,000, 900,
by which the loss on this big opera
ton is taken up at heavy shave,
and the speculation, for..this it is at
bottom, carried on in new and stron-
ger hands subject to the future OF
the market
This is a simple operation CON-
pared with the relief of the Balti-
more and Ohio Railroad. Four years
ago the company, in the last year
whose business was reported by Mr..
John w. Garrett, had 1915 miles in
it's system, no floating debt reported
and bonded debt Of $35 1926 900 is
sued or announced. Now the COM
pany has 1888 miles, or 1877 miles
more, in its system, bonded debt of
$57 900, 900, with loan of unknown
amount out and an admitted floating
debt of from 81 100000 to $ll ,000,-
900. This increase has not all taken
place in this interval, but most of it
has, and the financial condition of
the road has been improved by pay
ing out 81, 100000 in dividends dur
ing the last four years. Exactly
how much of the increase
of Indebtedness reaching $3l ,000,-
900 represents the new line from Bal
timore here, ninetynine miles long,
and two other small additions; how
much loss on the general traffic OF
the road during the months in which
it was cutting rates; how much pre-
vious deficits concealed by its re-
ports and how much for dividends
never earned, no one yet appears to
know. Even the syndicate reserves
the right of withdrawing, if the con-
dition of the road proves worse than
it has been represented to be.
Taking the road as reported, how
ever, the conclusion reached seems
to be that by selling the express, al
ready disposed of, the the telegraph
and sleeping car lines, and raising
$4,000, 900, the floating debt can be
carried and the road kept on a solv-
ent basis, provided, under new
management, no more money is was
ted by fighting other lines, as
through the reckless management of
the past four years. AS the new ad-
vance is half at 5 and half at 6, it is
high rate of interest, and the ar
rangement, when it is completed,
leaves the interest charges just about
twice what they were four years ago.
This arrangement is service to the
public by preventing the collapse of
a great corporation and the whole
sale slaughter of values which would
result from the presence Of bank
rupt trunk line carrying freight, as
Vanderbilt said Of the Grand Trunk,
for the "car grease" For all of the
fog raised about competition" such
a condition of affairs would be ut
terly disastrous. But it is plain that
the owners of the Baltimore and o.
hio have a good deal to learn while
the road is brought down to bust
ness basis and nothing paid out that
is not earned Phila. Press.